RBI shouldn't tighten monetary policy: FM

Kolkata, Sep 23: Finance Minister Pranab Mukherjee on Wednesday, Sep 23, said that RBI should not tighten the monetary policy as the Centre has planned to borrow huge amounts from the market.

"I am not prescribing a tight money policy", he said, pointing out that fiscal and monetary policies adopted by the government and the RBI to combat the slowdown are paying dividends and signs of recovery have started to show up.

The Centre proposed to borrow about Rs 4.5 lakh crore from the money market during the current fiscal against Rs 3.1 lakh crore in the previous fiscal.

RBI is expected to announce second quarterly review of the monetary policy on Oct 27, 2009